Court Accepts Hyundai-Kia's Request for Constitutional Review of 'Automobile Management Act Recall Provisions'... Constitutional Court Petition Filed

Hyundai Motor Company Headquarters in Yangjae-dong. [Image source=Yonhap News]

[Asia Economy Reporter Choi Seok-jin] The Constitutional Court has accepted a request for a constitutional review submitted by Hyundai and Kia Motors, arguing that the regulations defining recall requirements (product defect recovery) under the Automobile Management Act and the penalties for violations are unclear.

With the court approving Hyundai and Kia Motors' request and referring the constitutional review to the Constitutional Court, the constitutionality of the current automobile recall provisions will now be examined by the Constitutional Court.

According to the legal community on the 22nd, Judge Byun Min-seon of the Seoul Central District Court Criminal Division 10 accepted the request for a constitutional review submitted by Hyundai and Kia Motors corporations and others, who are on trial for delaying recalls despite knowing about defects in the 'Theta2' engine, on the 19th.

The Hyundai and Kia Motors corporations and three executives are on trial, charged with delaying recalls despite knowing about defects such as engine stalling and engine damage while driving in domestic sales of vehicles equipped with the Theta2 GDI engine since July 2019.

They requested the court to refer a constitutional review regarding Article 31, Paragraph 1 (Correction of Manufacturing Defects, etc.) of the Automobile Management Act, which stipulates recall requirements, and Article 78, Paragraph 1, Item 1 of the same law, which prescribes penalties for violations.

Article 31, Paragraph 1 of the Automobile Management Act states, "If an automobile manufacturer or parts manufacturer finds that the automobile or automobile parts they produced do not comply with automobile safety standards or parts safety standards, or have defects defined by the Ministry of Land, Infrastructure and Transport regulations that affect safety due to design, manufacturing, or performance issues, they must disclose this fact without delay and carry out corrective measures so that the automobile owner clearly knows the fact and the corresponding corrective action plan, by means such as postal mail or text messages via mobile phones as prescribed by the Ministry of Land, Infrastructure and Transport."

Article 78, Paragraph 1, Item 1 of the same law prescribes penalties stating, "Anyone who violates Article 31, Paragraph 1 by concealing, minimizing, or falsely disclosing defects, or who fails to correct the defect without delay from the day they become aware of it," shall be punished by imprisonment of up to 10 years or a fine of up to 100 million won.

According to Article 42 of the Constitutional Court Act, when a court refers a constitutional review, the trial is suspended until the Constitutional Court issues a ruling on the constitutionality of the relevant provisions, and the trial court may proceed only with procedural matters other than the final judgment if it deems it urgent.

The court’s acceptance of the constitutional review request can be seen as an indication that the court suspects the relevant provisions may have constitutional issues.

If the Constitutional Court rules these provisions unconstitutional due to violations such as the principle of clarity, the effect of the Constitutional Court’s ruling on criminal laws or legal provisions is retroactive, resulting in acquittals in criminal trials.

Previously, the prosecution charged Hyundai and Kia Motors corporations and related personnel in July 2019, alleging that they concealed the fact that the Theta2 engine applied to models such as the Grandeur, Sonata, and K5 had problems until the authorities began their investigation and delayed recalls.

Hyundai and Kia Motors argued that since the defect was caused by foreign substances introduced during the manufacturing process at their U.S. plant, domestic recalls were unnecessary. They began recalls in the U.S. in 2015 but delayed domestic recalls until April 2017, after the Ministry of Land, Infrastructure and Transport started its investigation.

This content was produced with the assistance of AI translation services.